ADDITIONAL COMMISSIONER OF INCOME TAX Vs. KANTILAL JAIN

JUDGEMENT

(1.) AT the instance of the Addl. Commissioner of Income-tax, M.P., Bhopal, the Income-tax Appellate Tribunal, Indore Bench, Indore, has referred the following question of law for the opinion of this court under Section 256(1) of the I.T. Act, 1961 (hereinafter referred to as " the Act ") :

(2.) THE material facts as set out by the Tribunal in the statement of the case are these : THE assessee is an individual of Indore and the assessment year involved is 1966-67. THE ITO completed the assessment of the assessee on a total income of Rs. 80,972. THE ITO while passing the assessment order did not invoke the provisions of Section 217 or Section 273(b) of the Act. THE Addl. Commissioner exeicising his jurisdiction under Section 263 of the Act found that for the assessment year 1966-67 the assessee was an assessee who had not been previously assessed by way of regular assessment and he ought to have filed an estimate of advance tax payable and paid tax accordingly during the financial year 1965-66 in accordance with the provisions of Section 212(3) of the Act and that having failed to do so, the assessee was liable for penalty under the provisions of Section 273(b) as well as interest under Section 217 of the Act. THE Addl. Commissioner after giving notice to the assessee and considering the objections of the assessee held that the order of the ITO was erroneous and was prejudicial to the interests of the revenue. THE Addl. Commissioner, therefore, set aside the order of the ITO with the direction that the ITO should make a fresh assessment in accordance with law, keeping in view the applicability of the provisions of Section 273(b) and Section 217 of the Act. THE assessee preferred an appeal to the Income-tax Appellate Tribunal, Indore Bench. THE Tribunal allowed the appeal in part, confirmed the order of the Addl. Commissioner in regard to the direction under Section 217 of the Act while setting aside the direction of the Addl. Commissioner under Section 273(b) of the Act. On the application of the Addl. Commissioner, the Tribunal has referred the aforesaid question of law arising out of the order of the Tribunal for the opinion of this court.